Compute the return on ordinary shareholders’ equity for 2025.

a. 47.9%.

b. 51.7%.

c. 61.2%.

d. 59.4%.

Use the following financial statement information as of the end of each year to answer Question.

Transcribed Image Text:

2025 2024 Inventory Current assets Total assets 54,000 48,000 81,000 106,000 382,000 326,000 Current liabilities 27,000 36,000 Total liabilities 102,000 88,000 Share capital preference 40,000 40,000 Ordinary shareholders' equity 240,000 198,000 Net sales 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 134,000 90,000 Income tax expense 22,000 18,000 Interest expense 12,000 12,000 Dividends paid to preference shareholders 4,000 4,000 Dividends paid to ordinary shareholders 15,000 10,000